2013 was an extraordinary year for a lot of Real Estate Pros. Many conversations about the housing market are ending in a much different matter than they had in years past. Lately the story is, “Wow”, We are really seeing an increase in home prices and a decrease in inventory”. Years ago this comment would have been accompanied with a graphic of a donkey with mouth wide open laughing hysterically.
The Real Estate market is definitely showing signs of growth and movement. Today home prices are beginning to slightly increase and whispers of a “Sellers Market” are rolling off agents tongues. This truly makes people a little more comfortable with the country still trying to pull out of the recent crash. All of this still would simply be mostly “lip Service” if not for the the giants of the mortgage market producing such impressive numbers. Let’s take a look at Fannie Mae and data released in a recent article by Timothy J. Mayopoulos President and Chief Executive Officer, Fannie Mae
In the statement Fannie Mae reveals their financial performance, over the past few years, has improved significantly, and in 2013 reported “84.0 billion in net income and $38.6 billion in pre-tax income, the highest annual income and annual pre-tax income in our company’s history”. In addition to this improvement Fannie Mae also has strengthened the underwriting and eligibility standards as so to promote a more sustainable housing market as related to homeownership.
In addition to developing stronger requirements for home buying eligibility, Fannie Mae has also worked to help owners avoid foreclosure by “completing more than 1.5 million workout solutions since 2009. In 2013, we completed 234,000 foreclosure prevention solutions. Less than 1 percent of the single-family loans in our book went into foreclosure in 2013, and we strive to help every at-risk family find an alternative to foreclosure.”
Below is a graphic giving a few numbers to grow on. Take a look and decide for yourself if you still should be standing on the sidelines or if it is time to Move forward?